FINRA barred Stephen Kiyoshi Takeda, a former broker at Morgan Stanley's Irvine, California branch, for failing to cooperate with an investigation concerning customer loans that may have been prohibited. A customer dispute settled for $400,000 in Takeda's file indicates he solicited an outside real estate investment opportunity not authorized by Morgan Stanley.
According to Stephen Takeda (CRD #1100052)'s BrokerCheck report, after a series of five- and six-figure tax liens from 2017-19, then-Morgan Stanley broker Takeda allegedly solicited funds from a customer to invest in an outside real estate opportunity that was not authorized by the firm.
"Selling away" refers to a broker soliciting or selling securities not approved by their affiliated brokerage firm. Because the product is not approved or authorized for sale, it may be riskier to not only purchase, but due to its existence outside of the firm's purview and supervision, holding the product comes with added risks due to its evasion of standard regulatory review and suitability checks.
This customer dispute, which evolved into litigation in Superior Court for Orange County, CA, resulted in a 2022 dismissal after Takeda made a direct payment to the plaintiffs for $400,000, thus settling the case.
When FINRA investigators attempted to learn more about the loan allegations, Takeda purportedly refused to provide documents and information, resulting in a bar from the industry.
If you suffered losses or other damages after investing with Stephen Takeda at Morgan Stanley in Irvine, or with any broker or investment adviser who sold away from their firm by soliciting investments in an outside product, fund, or other opportunity not approved by the firm, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.